Another bank takeover, another interest rate hike, another debt ceiling scare.

Feeling some deja vu? This is the markets, a new series from Goldman Sachs exchanges.

Hi, I'm Sam Grobart.

Today we're talking to Ashish Shah, chief investment officer of public investing in asset and wealth

management. Ashish, thanks for joining us today.

Great to be here.

So the big event this week was the feds raising interest rates by a quarter percent.

How have markets reacted to this decision?

So we saw a rally in the front end of the curve.

So markets now expecting rates to be a little bit lower based on their comments and stocks

sell-off. So what leads that to be the case?

Well, I think that the Fed really transmitted a pause and see message to the market

and so I think the market thinks that that's not going to be enough

it's going to be waiting for the pivot and what is that pivot going to be do you

think well I think that that pivot is going to be a question of does the Fed have to start cutting rates

enough and quickly enough in order to help stabilize the economy so that there's this real question as to whether the Fed is done hiking and I think that without question the Fed is supposed to be done hiking. They continue to hike that they're going to really create issues within the economy.

But I think on top of that, it may have been that they've hiked too much,

and we're seeing those cracks within the system you emerge and how those

cracks transmit into the real economy is going to be the question of what they

have to do going forward including pivoting to cutting rates.

What other data points or signals do you think were notable from that meeting?

So I think that Powell wanted to start off with a more hawkish tone because they are still playing the game of bringing

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